Tiny houses have grown in popularity and trend in the last decade. People are constantly engaging with tiny houses. While some are building one, some are living in one. They have become the comfort of many, and now, it has become a dream, especially for the ones who want to live alone.
However, this popularity is also the very reason why tiny houses are now slowly coming out of the cheap zone. Yes, tiny houses have now become expensive. Although they still cost lower than a normal house, they have seen a very sharp price hike.
Several reasons add to this factor. So let us discuss them and learn the reasons behind them.
Why are tiny houses so expensive? – Reasons
Tiny houses cost twice the less price of a normal house. They became popular, and their cheap rates were a major reason why. Although different tiny houses have different rates depending on their size and design, the standard rates were around 20,000-50,000 US dollars. However, in recent years, they have touched the line of 200,000-320,000 US dollars.
We see a drastic difference, and now, it is safe to say that tiny houses are expensive. But of course, not as expensive as normal houses.
However, the main reasons behind the hike are;
1. Location
The first reason tiny houses saw a hike in their rates is because of the location. Building a tiny house is cheap, but placing it in the right place with the right neighborhood can cost a lot.
Above that, due to the rise in popularity, there have been many tiny houses built. So it becomes a game of time and money sometimes. However, the reason that adds up is the legal allowance.
Many states do not allow tiny houses. Thus, people have to look for places only in the allowed states. And most states in the US that allow tiny houses are already expensive. Moreover, getting zoning permits in those areas can be a hassle.
Thus, the amount of the land plus these problems make it costlier.
2. Customized house
Although customization can cause no harm, in fact, it makes the tiny house even prettier and comfortable, there is a certain limit to it. The problem starts when people get greedy. Tiny houses are small, and they can only fit the basic amenities. And that is also the reason why people opt for tiny houses because they are small and do not involve any additional expenses.
However, if one tries to build a tiny house and accommodate all the amenities that a normal house can, it will be nothing but foolishness. It will only cost double the price of a usual tiny house and lead to more expenses because to accommodate so many appliances, tiny houses do not have the traditional space. So, customized architecture is required, such as storage pieces, space-saving furniture. These are all expensive amenities and will make life in a tiny house expensive.
3. Oversaturated Market
Due to the rise in popularity of tiny houses, builders and companies have started competing with one another. All companies are trying to build more customized and fancy tiny houses that are oversaturating the market. Therefore, to sell these unique tiny houses, builders and real estate markets overcharge customers and meet the rising trend, making tiny houses more expensive than ever.
These are the reasons why tiny houses have now become expensive properties. While they still cost less than a usual house, their categorial price hike is something one cannot ignore.
